Published on 5/26/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $915,000 contingent income autocalls on Nasdaq, Russell, Dow
By William Gullotti
Buffalo, N.Y., May 26 – Morgan Stanley Finance LLC priced $915,000 of contingent income autocallable securities due May 5, 2026 tied to the worst performing of the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 6.75% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
The notes will be automatically called at par plus the coupon if each index closes at or above its initial level on any quarterly call determination date after one year.
If the lowest-performing index finishes at or above 70% of its initial level, the payout at maturity will be par plus the final coupon. Otherwise, investors will be fully exposed to the decline of the final index value of the lowest-performing index.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying indexes: | Nasdaq-100 index, Russell 2000 index, Dow Jones industrial average
|
| Amount: | $915,000
|
| Maturity: | May 5, 2026
|
| Coupon: | 6.75% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that period
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold level, par; otherwise, full exposure to decline of lowest-performing index from its initial level
|
| Call: | At par plus coupon if each index closes at or above its initial level on any quarterly call determination date after one year
|
| Initial levels: | 13,860.76 for Nasdaq, 2,266.449 for Russell, 33,874.85 for Dow
|
| Coupon barrier levels: | 9,702.532 for Nasdaq, 1,586.514 for Russell, 23,712.395 for Dow; 70% of initial levels
|
| Downside threshold levels: | 9,702.532 for Nasdaq, 1,586.514 for Russell, 23,712.395 for Dow; 70% of initial levels
|
| Pricing date: | April 30
|
| Settlement date: | May 5
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.625%
|
| Cusip: | 61771VQE3
|
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